Expense Accounts

question 5

Multiple Choice

Expense accounts

• A) Are increased with credit entries
• B) Are increased with debit entries
• C) Normally have credit balances
• D) Are closed to the capital stock account

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Definitions:

Inelastic

A situation where the demand for a good or service is relatively unresponsive to changes in price.

Total Revenue

The total amount of money generated by a business from its primary activities of selling goods or services before any expenses are deducted.

Price

The amount of money required to purchase a good or service, often determined by supply and demand dynamics in the market.

Income Elasticity

A measure of how much the demand for a good or service changes in response to changes in consumers' income.